SBA Acquisition Data

Drinking Places (Alcoholic Beverages): SBA business acquisition loan data

338 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Drinking Places (Alcoholic Beverages) (NAICS 722410), totaling $189M. Median loan $325,000, 50% lower than the all-acquisition median.

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acquisition loans
338
FY2018 to FY2026
total approved
$189M
gross loan amount
median loan
$325,000
middle half: $165K to $708K
avg initial rate
7.92%
at approval, mixed years
median term
10 years
120 months
charge-off rate
2.1%
FY2018 to FY2021 cohort, 140 loans

Reading this industry's numbers

  • Deal size. The loan excludes the buyer's equity and any seller note and may include working capital. A loan request far above $707,550 would be in the top quarter of SBA acquisition loans in this industry.
  • Share of all acquisitions. This industry is 0.7% of all SBA-financed business purchases, ranking #31 of 300 industries tracked.
  • Geography. California leads with 35 loans; the top five states account for 42% of the industry's acquisitions.
  • Jobs. Lenders reported 4,363 jobs supported across these loans, about 12.9 per acquisition, a rough proxy for the size of business changing hands.

Drinking Places (Alcoholic Beverages) acquisitions by year

Drinking Places (Alcoholic Beverages) SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian loan
FY2018 37
$14.6M $220,000
FY2019 49
$23.6M $260,000
FY2020 21
$14.2M $430,000
FY2021 33
$16.2M $280,000
FY2022 28
$16.3M $329,600
FY2023 42
$28.3M $479,000
FY2024 44
$22.5M $377,500
FY2025 46
$25.1M $376,400
FY2026 38
$27.9M $405,500

How often do these acquisition loans fail?

Of the 140 Drinking Places (Alcoholic Beverages) acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 2.1% by loan count and 0.3% by dollars. 70 have already been paid in full.

For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Drinking Places (Alcoholic Beverages) is 39% lower than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.

"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.

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Top states

State ranked by SBA acquisition loans
#StateLoansShareDollars
1California35
10.4%$20.9M
2Wisconsin31
9.2%$12.6M
3Pennsylvania30
8.9%$17.4M
4Illinois23
6.8%$14.6M
5Florida22
6.5%$16M
6Michigan19
5.6%$6.8M
7Minnesota18
5.3%$6.7M
8Ohio18
5.3%$3.9M
9New York17
5.0%$10.5M
10Texas15
4.4%$13.9M

Most active lenders

Lender ranked by SBA acquisition loans
#LenderLoansShareDollars
1The Huntington National Bank24
7.1%$7M
2Northwest Bank8
2.4%$1.8M
3Beacon Bank and Trust7
2.1%$10.8M
4Plumas Bank6
1.8%$3.1M
5Newtek Small Business Finance, LLC6
1.8%$2.8M
6Celtic Bank Corporation5
1.5%$3.6M
7First Bank5
1.5%$3.2M
8Nicolet National Bank5
1.5%$2.8M
9Byline Bank4
1.2%$6.1M
10Stearns Bank National Association4
1.2%$3.2M
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Franchise brands in Drinking Places (Alcoholic Beverages)

1% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:

Brand ranked by SBA acquisition loans
#BrandLoansShareDollars
1The Brass Tap Craft Beer Bar1
20.0%$1.7M

Questions buyers ask

How much is a typical SBA loan to buy a business in Drinking Places (Alcoholic Beverages)?

Median $325,000 across 338 acquisition loans (FY2018 to FY2026); the middle half ran $164,600 to $707,550. That is 50% lower than the $645,250 median for all SBA-financed acquisitions.

Which lenders finance the most Drinking Places (Alcoholic Beverages) acquisitions?

The Huntington National Bank (24), Northwest Bank (8), Beacon Bank and Trust (7), Plumas Bank (6), Newtek Small Business Finance, LLC (6).

Are businesses in Drinking Places (Alcoholic Beverages) often franchised?

Rarely. Only 1% of acquisition loans in this industry involved a franchised business; most are independent operators.

How risky are SBA loans for buying a business in Drinking Places (Alcoholic Beverages)?

Of 140 seasoned loans (FY2018 to FY2021), 2.1% charged off, 39% lower than the 3.5% benchmark for all SBA acquisition loans.

What loan terms are common for Drinking Places (Alcoholic Beverages) acquisitions?

Median term 10 years, average initial rate 7.92% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.

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